Research reveals 91% of UK Mobile users will use mobile payments in 2015, driven by engagement
Research has revealed that more than 31 million (92%) UK mobile users will make payments with their mobile device in 2015. A further 24% of users said their spend on mobile would increase with additional payment platforms available at the point of purchase, such as carrier billing.
Following extensive research with business owners and mobile users, engagement and billing company Oxygen8 has produced its 'Mastering multichannel journeys: making engagement pay' White Book that explores how businesses communicate with customers and how those customers want businesses to communicate with them.
According to the white book, 75% of businesses will use four different channels to connect with their customers: typically their brand’s website, social media, email and either app or SMS up to the point of purchase. However, following purchase the number of channels used drops to around two.
The research finds that 31.7 million people in the UK have connected with an average of six businesses over their mobile device and that these connected consumer will increase the number of channels a business can potentially connect from two to three up to the point of purchase. Post-purchase this drops back down to two.
Pre-purchase, 10.8% of consumers will increase their spend with the business following relevant engagement, and a further 24% will be positively influenced, says Oxygen8.
However, engaging with consumers becomes increasingly challenging over time, says the report.
Almost 50% of connected mobile users attracted to vouchers and promotions and an average of 22% of consumers claim businesses are increasing frequency and relevance of communications with a positive effect post-purchase. Brand advocates reduces from 25% to 13% following purchase
Robert Townsend, Chief Marketing Officer at Oxygen8 explains: “Our research has shown that up to 92 per cent of mobile users connected to a business will use a mobile device to make a payment this year. As well as making mobile payments quicker and easier, the smartphone has enabled multichannel marketing to come full circle, and that's what we do. Today’s consumer wants businesses, over a sustained period, to engage with them using SMS, email, and website across their mobile device.”
He adds: “Engaging with consumers becomes increasingly challenging over time, our research reveals that voice calls remain the number one channel that businesses communicate with their customers. However consumers preferred contact through SMS and email showing potential disconnect between these businesses and their customers. It’s essential that brands continue to evolve their multichannel mobile marketing strategy to ensure they are capitalising on mobile payment opportunities. Businesses that are failing to do this need to transform ineffective communications into compelling engagement if they want to reverse the decline of brand advocates post purchase.”